This will almost double the current P0.12 per kwh FIT-All component in the electric bills, a separate line item set as subsidy to RE projects coming directly from consumers’ pockets.

Energy Secretary Alfonso G. Cusi said he would have wanted to take out the FIT-All as a burden for consumers, but the ‘very immediate need” for the mandated cost pass-on will no longer allow him the time leeway to explore for options.

“If I have my way, I don’t want the FIT-All as pass-through to consumers, but that’s already there,” the energy chief stressed.

It was gathered from TransCo that roughly P4.0 billion will account for cost under-recoveries and integrated in the adjusted FIT-All filing for calendar year 2017.

The bulk of the cost pass-on will account for the added installations, primarily in solar farm developments coming on stream from the second wave FIT race culminating in March this year.

The very low spot prices in the Wholesale Electricity Spot Market (WESM) – set as reference point in the FIT-All computation – had been triggering the uptick of the RE cost incentive being passed on in the electric bills.

It was emphasized that for solar developments, the estimates just factored in the costs up to the prescribed 500-megawatt cap in installations.

The second round FIT contest on solar technology had been oversubscribed – reaching 890 megawatts, hence, close to 400MW are still not included in the scale of installations to be incentivized with a FIT rate of P8.69 per kWh.

Cusi earlier indicated to media that he will no longer allow any third round of FIT incentives for solar and wind developments – and that may include the current solar “over-developments.”